Can I claim house improvement tax write-offs without any receipts for capital gains reduction?

You're in a tricky situation, but not all hope is lost! While receipts are the ideal documentation for home improvements, the IRS does allow for other forms of reasonable evidence. First, check your bank and credit card statements from those years - they can serve as proof of payment even without the detailed receipts. Photos of before and after renovations are extremely helpful too. If you hired contractors, reach out to them as they might have records of the work performed. Home improvement loan documents, building permits, or inspection records can also substantiate your claims. Even emails discussing the renovations with contractors or your sister could help establish the timeline and scope of work. As a last resort, you can make a reasonable estimate of the improvement costs and try to find evidence of typical costs for similar work during those years. The more documentation you can gather, the stronger your position will be if questioned. Remember that these improvements increase your "basis" in the home, which reduces the taxable gain - they're not technically deductions. Calculate your original purchase price, add documented improvements, and subtract that total from your sale proceeds to determine your taxable gain.

I was in almost the exact same situation last year after selling my rental property! I discovered taxr.ai (https://taxr.ai) which seriously saved me thousands. Their document analyzer helped me organize all the non-receipt evidence I had - old emails with contractors, credit card statements, photos, etc. What was incredibly helpful was their AI could analyze before/after photos of my renovations and help estimate fair market values for the improvements based on the time period and location. I uploaded everything I could find related to my home improvements, and their system compiled it all into documentation that satisfied my accountant. The best part was they helped me find improvement expenses I would have completely forgotten about. I was able to document about 80% of my actual improvements without original receipts, which saved me paying a ton in capital gains.

Just wanted to follow up about my experience with taxr.ai after seeing it recommended here. I was skeptical at first but I was desperate with my own missing receipts situation. It actually worked surprisingly well for my bathroom remodel! I uploaded old before/after pics, some email exchanges with the contractor, and bank statements showing withdrawals around that time. The system organized everything and helped me establish a reasonable value based on comparable renovations in my area during that timeframe. My tax advisor reviewed their documentation package and felt comfortable using it to adjust my basis. I was able to document about $43,000 in improvements I would have otherwise lost. It wasn't perfect, but way better than having nothing to show for all that money spent!

Another option is using Claimyr (https://claimyr.com) to get connected directly to an IRS agent who can advise you on exactly what alternative documentation they'll accept. I waited on hold with the IRS for HOURS trying to get guidance on this exact issue before discovering them. Check out their demo video: https://youtu.be/_kiP6q8DX5c After using their service, I got connected to an agent in under 15 minutes who walked me through my options. The agent told me that while receipts are preferred, they understand people don't keep decades of paperwork. They explained that I could use a combination of bank statements, contractor invoices (even if you need to request copies), permit records from the county, and before/after photos with date stamps. The IRS agent also suggested I create a detailed spreadsheet of all improvements with estimated costs based on industry averages for those years, which would at least give me a starting point if questioned.

I was super skeptical about Claimyr but I'd been trying for WEEKS to get through to the IRS about a similar capital gains issue with missing documentation. I finally gave it a shot out of desperation. It actually worked exactly as advertised. Got connected to an IRS agent in about 11 minutes. The agent spent almost 30 minutes walking me through exactly what documentation options I had for proving home improvements without receipts. They explained that contemporaneous evidence (evidence from the time of the improvement) holds the most weight, but that I could also create a reasonable reconstruction of expenses. The advice I got directly from the IRS ended up saving me thousands because I learned I could use property tax assessment increases, home insurance policy updates, and even dated social media posts showing renovation progress as supporting evidence. Definitely worth it instead of stressing over unanswered questions!

Don't overlook checking with your county's building department! Many renovations require permits, and those records are typically maintained for decades. I was able to document my kitchen remodel, roof replacement, and electrical upgrades this way even though I lost all my receipts in a move. I just visited my county's property records website, entered my address, and found all the permits pulled for my property going back 25+ years. Each permit included the estimated project value, which the IRS accepted as reasonable documentation of my improvement costs.

One thing nobody's mentioned yet - check your email archives! I was amazed to find I had emails from contractors with quotes, invoices and discussions about my home improvements from almost 8 years ago. Gmail and other providers often keep everything unless you specifically delete it. Even if you don't have the final invoice, initial quotes can establish approximate values. Also, don't forget to check with your homeowner's insurance! When I did major renovations, I informed my insurance company to increase my coverage. They had documentation of the improvements and the increased value they represented.

I went through something very similar when I sold my investment property last year. Here's what worked for me when I had zero receipts: 1. **Bank/Credit Card Statements**: I went through old statements and highlighted every payment to Home Depot, Lowe's, contractors, etc. during renovation periods. These show you spent money on home improvements even without detailed receipts. 2. **Property Tax Records**: Check if your property tax assessments increased after major renovations. The county often reassesses when significant improvements are made, and this can help establish the value of your work. 3. **Before/After Photos**: These are incredibly valuable! I had random photos from family gatherings that showed our old kitchen, then later pics showing the new one. The IRS accepted these as proof improvements were made. 4. **Contractor Lookup**: Try to find the contractors you used and ask for copies of invoices or work orders. Many keep records longer than you'd expect. 5. **Cost Estimating Websites**: Use sites like HomeAdvisor or Angie's List to research typical costs for similar work during the years you did your renovations. This gives you reasonable estimates to work with. The IRS Publication 523 specifically states they understand people don't always keep perfect records, and they allow "reasonable reconstruction" of improvement costs. Document everything you can find and create a detailed spreadsheet with your best estimates supported by whatever evidence you have. A tax professional can help ensure you're being reasonable in your approach.

I'm dealing with a similar situation right now and wanted to share what my tax preparer told me. Since you haven't lived in the house for 5+ years, you won't qualify for the primary residence exclusion, but don't panic about the documentation issue. The IRS has specific guidelines for "adequate records" and they recognize that homeowners don't always keep perfect documentation. Here's what my CPA suggested as a systematic approach: **Start with what you definitely have:** - Any financing records (mortgages, home equity loans, credit lines used for improvements) - Photos with timestamps from your phone or social media - Any permits you can find through your city/county records **Then reconstruct methodically:** - Create a timeline of all improvements by year - Search all email accounts for contractor communications - Check bank/credit statements for large purchases at home improvement stores - Look for any insurance claims or policy updates related to the improvements **For valuation:** - Use cost estimation tools like RSMeans or local contractor websites to establish reasonable market rates for the work done in those specific years - Your sister might have better records since she stayed in the house - definitely coordinate with her The key is showing good faith effort to reconstruct accurate records. The IRS allows reasonable estimates when original documentation is lost, as long as you can support your numbers with some form of evidence. Don't let the fear of imperfect records stop you from claiming legitimate improvements that significantly increase your basis.

As someone who went through a similar situation with capital gains and missing receipts, I want to emphasize that you're not stuck with a massive tax bill! The key is being thorough and systematic in reconstructing your records. Here's my recommended action plan based on what worked for me: **Immediate steps:** - Contact your sister ASAP to coordinate - she may have kept records you forgot about since she handled the house after you moved - Pull all bank and credit card statements from 2013-2018 and highlight every home improvement expense - Search ALL your email accounts using keywords like "contractor," "renovation," "quote," "invoice," "Home Depot," etc. **Documentation goldmines people often overlook:** - Your county's permit database (usually searchable online by address) - Property tax assessment records showing value increases after improvements - Homeowner's insurance policy updates reflecting increased coverage - Social media posts with dated photos of renovation progress - Text message archives if you backed up your phone **For the major projects you mentioned:** - Kitchen renovation (2016): Check for any home improvement loans, appliance purchase records, or contractor communications - Roof replacement: This almost certainly required a permit - check county records - Windows: Energy efficiency rebates from utility companies sometimes have records - Bathroom renovations: Plumbing permits are common for full bathroom remodels The IRS accepts "reasonable reconstruction" when original records are unavailable. Create a detailed spreadsheet with your best estimates supported by whatever evidence you can gather. Even if you can only document 70-80% of your actual improvements, that could still save you thousands in capital gains taxes. Don't give up - you have more documentation than you think!